Production Cost

Production Cost

Long Run & Short Run

Production Cost

Multiple Choice

In Long Run, Output changed by varying usage of all inputs

• True

• False

Basic Concepts of Production Theory

Short Run

Long Run

Multiple Choice

In Long Run, All changes in output achieved by changing usage of variable inputs

• True

• False

Fill in the Blank

Answer by writing Short Run or Long Run : for this production function Q = f (L, K) = f (L)

Production Cost

Fix cost graph is always flat

as seen on the side

Y axis is Price

X axis is Quantity

Open Ended

soo

are fix cost curves can go up?

Multiple Choice

Total Revenue as same as Profit

• True

• False

Multiple Choice

Total Cost equals

• Total Variabel Cost

• TVC + TFC

• Fix Cost

• Revenue

• TVC + AVC

Multiple Choice

Marginal Cost

• Additional costs caused by adding one unit of the labor

• Additional costs caused by adding one unit of the product

• Additional costs caused by adding one unit of the capital

Multiple Choice

Total Revenue =

• P x Q

• P x T

• Q x T